Gold closed lower on Monday and extend the decline after a short covering bounce off the 38% retracement level of this year's rally crossing. The mid-range close sets the stage for a steady opening on Tuesday. Stochastics and the RSI are oversold and turning neutral to bullish hinting that a short-term low might be in or is near. Closes above the 20-day moving average crossing are needed to confirm that a short-term low has been posted. If it renews the decline off June's high, the 50% retracement level of the aforementioned decline crossing is the next downside target.
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